Sep 2005 - Mincor Resources

Mincor Resources NL (MCR) – Ramping Up Production by 40% to 14,000tpa Nickel from March Quarter 2006

Mincor Resources (MCR) commissioned its two “new” re-opened nickel mines of Redross and Mariners, and extension of Miitel into North Miitel during 2004/2005 and expects to produce ~13,000t of Ni during 2005/2006 inferring that it could produce 14,000tpa Ni from MQ2006.

While Wannaway is expected to continue as long as it profitably can, Miitel remains the mainstay of MCR’s operations at Widgiemooltha (south of Kambalda in WA), and with the increased exploration, extensions both north & south of Miitel have already been discovered lengthening Miitel’s probable life beyond 5 years.

MCR is a relatively conservative company, only including remnant pillars in resources if there is an MCR approved plan to mine them, which has resulted in a very high resource to reserve conversion rate of >90%. Resources were 68,000t Ni as at 30 June 2005 having increased by a net 12% (8,800t Ni) since June 2004, and a further upgrade is expected within the next 6 months (by MQ 2006), based on the new discoveries and extensions to ore boundaries since late June 2005.

There is a market perception that the Widgiemooltha Dome’s Ni grades and orebody sizes are lower than Kambalda’s and it is less prospective. However, the average Ni grades are in fact similar, with high tenor >10%Ni also present, such that the eastern side of the Widgiemooltha Dome appears to be just as prospective with potentially material upside since it has been explored to a lesser degree.

While the Widgiemooltha area is littered with old gold workings, the north-south striking Lake Zot dolerite (mainly under the salt lake) has not been drilled for gold, despite its host rock similarities to Gold Fields’ St Ives and Avoca’s Higginsvile, and its proximity to WA’s renowned gold mineralisation-feeding structures. MCR have a programme to RC drill the Lake Zot dolerite starting in October 2005.